IPG Photonics Corporation (NASDAQ:IPGP) shares are trading lower on Tuesday after reporting first-quarter results.
The company reported adjusted earnings per share of 31 cents, beating the Street view of 21 cents. Quarterly sales of $227.79 million (down 10% year over year) outpaced the analyst consensus estimate of $227.10 million.
Revenues slumped owing to lower sales in materials processing. Changes in foreign exchange rates reduced revenue growth by approximately 2%. Materials processing sales accounted for 86% of total revenue and decreased 14% year-over-year, as a result of lower sales in welding and cutting applications.
Also Read: Bessent Signals Imminent Trade Deals, Dismisses Recession Fears As Stocks Rebound
Operating income in the quarter under review slumped 91% to $1.8 million, while operating margin significantly contracted to 0.8% in the quarter under review, compared with 7.6% in the year-ago period.
Adjusted EBITDA in the quarter fell 19% on a year-over-year basis to $32.7 million.
“While recent tariffs have caused uncertainty related to the timing of shipments and some increased costs in the near term, we are able to take advantage of our global manufacturing footprint and supply chain to mitigate their impact while continuing to invest in the future growth of our business,” said Mark Gitin, CEO.
Gross margin in the quarter under review expanded to 39.4% from 38.7% in the year-ago period.
Outlook: IPG Photonics expects adjusted earnings per share for the second quarter to range between a loss of $0.05 and a profit of $0.25, below the consensus estimate of $0.31.
The company also projects second-quarter revenue between $210 million and $240 million, missing the Street expectation of $242.19 million.
“Our revenue guidance is approximately $15 million lower than it would have been due to potential shipment delays related to tariffs,” the firm said.
IPG Photonics expects the second quarter adjusted gross margin to be between 36% and 38%, including 150 to 200 basis points of impact from tariffs.
IGP Price Action: IPGP shares are trading lower by 12.31% to $55.36 at publication on Tuesday.
Read Next:
Photo: Pavel Kapysh via Shutterstock
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。